Since HIBB's products are primarily used during the warmer months of the year, its sales are quite seasonal. Furthermore, HIBB heavily relies on holiday sales of goods for upcoming sports seasons. Since the holiday season of 2008 is expected to be dismal for retailers, HIBB's overall 2008 outlook seems dimmer.
The declining U.S. economy has squeezed out consumers' wallets. Consequently, many potential customers do not have the luxury to buy Hibbett's non-discounted products.